Barclays TRADING HUB

Barclays Stockbrokers can help you take the next step in your trading.

If you’re new to advanced trading, we can provide you with information and support to help get you started. If you already know what you’re looking for, then you can choose the online account that best suits your needs.

Option 2 – Waive the bonus in return for your employer paying the same amount into your pension plan

​

​Option 1 – invest net bonus into pension

​Option 2 – waive bonus

​Bonus intended for pension

​£20,000

​£20,000

​Net pay after 40% income tax and 2% NIC

​£11,600

​n/a

​Personal amount invested into a pension

​£11,600

​n/a

​Tax relief at source on investment at 20% (2013/14)

​£2,900

​n/a

​Gross amount invested into pension (2013/14)

​£14,500

​£20,000

​Tax relief via self assessment at 20% (2013/14)

​£2,900

​n/a

​Total Benefit

​£17,400

​£20,000

Under option 1, and as a higher-rate taxpayer, you could claim an additional £2,950 in tax relief at 20% via self assessment. And you could invest this in your plan. However, this would happen during the following tax year and still leave you worse off than if you opt for a bonus waiver.

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